The West circle the wagons!

[Mega]

http://uk.reuters.com/article/busine...080828?rpc=401&

The last stand!
Mike

[Starving Steve]

Re: The West circle the wagons!

Lending on major world currencies is a good move for central banks. Everyone wins because the collateral is world cash.

The issue that I have with the central bankers is lending on sub-prime mortgages, neg-am mortgages, creative mortgages, McMansions, and Mickey-Moused appraisals. For that inane policy decision, point your finger to Ben Bernankee, Bush's man at the Fed.

I recall the quote when Ben Bernankee arrived at the Fed; I think it was from Donald Kohn, the other inflationist bonehead working with Bernankee. In a comment made to U.S. bankers he said, "Bring your sailboat loans, and we will buy those loans too." :rolleyes:

[GRG55]

Re: The West circle the wagons!

http://uk.reuters.com/article/busine...080828?rpc=401&

The last stand!
Mike

"...Under the changes, commercial banks could be allowed to use euro-denominated collateral to borrow dollars from the U.S. Federal Reserve..."

LOL. Fits right in with what EJ said here.

[phirang]

Re: The West circle the wagons!

"...Under the changes, commercial banks could be allowed to use euro-denominated collateral to borrow dollars from the U.S. Federal Reserve..."

LOL. Fits right in with what EJ said here.

So basically, the US is bailing out the european banks who hold mortgages/FNM/FRE, but there is no delta_M3 because, well, they're using swaps and repos?

I wonder how long they can do this? Are we going to have zombie repo/swap regime for a year or so until the market turns/WW III begins?

[metalman]

Re: The West circle the wagons!

So basically, the US is bailing out the european banks who hold mortgages/FNM/FRE, but there is no delta_M3 because, well, they're using swaps and repos?

I wonder how long they can do this? Are we going to have zombie repo/swap regime for a year or so until the market turns/WW III begins?

wwiii began long ago. you mean the official starting gun?